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SAIL plans to bid for stressed assets of Essar, Bhushan Steel

Essar Steel was among the initial 12 companies identified by the Reserve Bank of India for insolvency proceedings

Press Trust of India  |  New Delhi 

A man stands next to an advertisement of Steel Authority of India Ltd. (SAIL) at a street in New Delhi, India. Photo: Reuters

The country's largest steelmaker is considering bidding for the stressed assets of and that are facing proceedings.

According to sources, "a team of has visited the units of and almost 20 days back to assess how are units and to evaluate whether to bid (for) the units or not".

was among the initial 12 identified by the Reserve Bank of India (RBI) for proceedings.

"Since we (both Essar and Steel Authority of India Ltd) are in the same sector, we are keeping our options open for buying stressed assets," a official said.

CFO Nitin Johari said "I have nothing to say. There is a process going on thus I can't comment on it".

However, could not be reached out for comments.

owes about Rs 45,000 crore to lenders.

Essar Group had earlier submitted expression of interest for and said it will submit a resolution plan to the resolution professional (IRP) within the scheduled time frame.

The government has last month promulgated an ordinance to bar wilful bank loan defaulters as well as those with NPA (non-performing asset) accounts from bidding in auctions being done to recover loans under the process.

The ordinance comes as a blow to defaulting promoters seeking to reclaim their firms that are under proceedings, aims at putting in place safeguards to prevent unscrupulous persons from misusing or vitiating the provisions of the IBC (and Bankruptcy Code), the corporate affairs ministry had earlier said.

First Published: Sun, December 31 2017. 17:21 IST